Does your boat’s value exceed $5,000? If it does, boat insurance is highly recommended. Even if it doesn’t, boat insurance will cover you in case of accidents making it a staple for many avid boaters. You love your boat and want to protect it, so getting it insured is a smart decision.
When insuring your boat, it could be covered for its agreed or stated value. This number represents how much it would cost the owner to fully replace the boat in the event of an accident. This value also includes upgrades to the vessel. If your boat is worth $4,000 but you’ve had $2,500 worth of work done to it, the agreed value would be $6,500. So if you are in a boating accident, your policy will cover the full price you paid for your boat at the time of accident.
But what is covered by my policy? Well, all policies are different, yet the majority of policies are classified as ‘all risk’. If you couldn’t already guess, all risk means that you are covered by all types of risks. It might be more clear if the policy was called ‘most risk’, since there are a few things not covered by all risk policies such as…
- Freezing damage
- Deterioration
- Gradual wear and tear
It is important for captains to know their policy. If you are operating a high performance speedboat, it is likely that your boat’s insurance policy is different than someone who is operating a different type of vessel. Typical policies for high performance boats disallow individuals other than the owner from operating the boat. Other policies will allow third-party individuals to operate the vessel should they be certified. As a responsible captain, it is your responsibility to know and understand your insurance policy. If your boat gets wrecked while it was being operated in violation of your policy, your boat insurance coverage may become void. This means that if your boat insurance policy says that only the insured operator can drive the boat, and the vessel gets wrecked while one of the insured operator’s friends was driving, the boat may not be covered.
Boat insurance helps Nova Scotia boaters to be prepared for the unexpected. Most policies offer medical payments and death benefits should they be required, and many boaters add ‘protection and indemnity’ to their policies for an extra security measure. This feature also covers legal fees, damages, and wreck towing which helps you to be prepared and expect the unexpected.
When you are prepared for the accidental events in your boating life you gain peace of mind. Boaters also gain peace of mind when they know they are saving money. What if we told you that you could do both? If you are in a boating accident and are covered by boating insurance, you could save thousands in fees and services. You can also save on your monthly premium if you have taken a Transport Canada approved boating safety course. Many brokerages will give you a discount on your premium if you are a certified safe boater – just bring your proof of competency to your insurance broker. Take the course, become a certified boater, and be prepared; get your boat insured today.
BOATsmart! Assure™ is the best-in-class insurance coverage for smart boaters, like you.